FasalPay and Kissan Gudam join forces to boost profitability of Pakistani farmers

Pakistani agri-fintech platform FasalPay and agricultural storage business Kissan Gudam have announced a collaboration aimed at significantly enhancing the profitability of farmers.

“This collaboration aims to provide farmers with a comprehensive solution that encompasses crop storage, agri-inputs, and affordable agri-financing,” according to the official statement.

This strategic partnership aims to leverage the strengths of both organizations to provide comprehensive solutions that address key challenges faced by farmers, particularly in the areas of finance, technology, and storage. By combining their expertise, FasalPay and Kissan Gudam are poised to revolutionize the agricultural sector by empowering farmers with innovative tools and resources to maximize their earnings and optimize their operations.

How partnership will benefit farmers?

Farmers in Pakistan often face distress sales of their commodities immediately after harvest, resulting in lower prices due to a supply glut. They are compelled to repay loans and purchase inputs for the next crop promptly. However, the absence of viable warehousing solutions forces them to store their commodities in sub-optimal conditions, leading to weight loss and quality degradation. Exploiting this situation, aggregators and middlemen buy commodities in large quantities, anticipating price appreciation of 20-50% within three to six months.

To address these challenges, Kissan Gudam, with its state-of-the-art hermetic storage facilities, now provides farmers with secure storage options. Additionally, they can leverage FasalPay’s comprehensive agri-services, including affordable credit, access to agri-inputs, expert advice, and fair sale of produce. This integrated approach allows farmers to reduce farming costs and obtain better prices for their produce, leading to higher profits.

“Farmers cannot only store their commodities safely but also have access to a wide range of off-takers to sell digitally. We are delighted to partner with FasalPay who shares our vision and are committed to uplift Pakistan’s agri ecosystem” said Farhan Tahir, the co-founder and CEO of Kissan Gudam.

FasalPay

FasalPay tech-enabled agri-fintech that connects farmers and retailers with banks and agri-businesses to maximize crop yields and profitability through aggregation and end-to-end engagement. The company is led by Habib who has over 20 years of experience developing digital products and financial services.

“This partnership enables us to offer our portfolio of services to farmers who cannot access formal credit because of farming on leased lands or don’t want to get their lands mortgaged by the banks. By putting their commodity as collateral, they not only get quicker access to affordable credit but also benefit from higher earnings by avoiding distress sales” said Habib Saqib, founder and head of business at FasalPay.

Kissan Gudam

Kisaan Gudam, meaning the Farmer’s Warehouse, is an innovative initiative in Pakistan to reduce post-harvest losses exceeding $1 billion annually. It offers hermetic cocoons for storing crops like wheat, rice, and maize, addressing storage challenges faced by smallholder farmers. The organic storage method controls moisture and carbon dioxide levels to prevent insect infestation and mold.

Farmers storing their produce receive 70% of its value, providing cash flow during harvest without rushed sales. This initiative promotes commodity-based financing, empowers farmers, addresses nutritional needs, and fosters market linkages. Kisaan Gudam has partnered with GrainPro to introduce Hermetic technology in Pakistan.

Nuxhat Khurshidhttps://islamabadscene.com
Nuxhat Khurshid is a passionate writer, reader and documentary-maker. She mostly writes on environment, climate change and development issues for Islamabad Scene.

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